ARSENAL manager Arsene Wenger has insisted that his side can compete with Europe's richest clubs for the signature of coveted Atletico Madrid striker Radamel Falcao.

Arsenal could be set to rival Chelsea and Manchester City for the signature of Falcao

The Gunners boss has come under pressure recently after his team were knocked out of the FA Cup and saw their Champions League hopes suffer a huge dent when Bayern Munich won 3-1 at the Emirates last week.

But some solace was found in North London after this weekend's victory over Aston Villa, and the French tactician will have pleased supporters with his claim that Arsenal could match a £40m bid for Falcao this summer as well as afford his reported £150,000 per week wages.

Chelsea and Real Madrid are thought to be the favourites to sign the Colombian hitman, while Real Madrid and Bayern Munich have also been linked.

If we find a player of top, top quality we will take him

Arsene Wenger

"We can do it,’ said Wenger questioned about the prospect of Arsenal signing Falcao.

"If we find a player of top, top quality we will take him.

"We are in a stronger situation where we can spend some money. I’m not reluctant to do so. First of all, we only had money recently," admitted Wenger.

Wenger insists Arsenal could afford to sign the Colombian striker

"We went out to spend money at Christmas but we didn’t find the players.

"Financially, we can live without the Champions League."

Arsenal fans will hope that the club can overhaul Tottenham in the race for Champions League qualification during the remainder of the campaign to help their bid to sign Falcao, although it will be promising for supporters to hear Wenger insist his team can compete for the biggest names in world football.